Hong Kong shares are nearing a two-week peak as the US inflation data increases the likelihood of interest rate reductions. The consumer price index has brought about an 'agreeable shock' and indicates a 'subtle reduction of constant inflationary strains', according to an investor.

The Hang Seng Index saw a 1.2 per cent rise, closing at 19,522.89, a record high since January 6th. Similarly, the Hang Seng Tech Index also increased by 1.2 per cent. Meanwhile in China, the CSI 300 Index saw a marginal increase of 0.1 per cent, while the Shanghai Composite Index went up by 0.3 per cent.

Chinese aluminum producer, China Hongqiao Group, saw its shares surge over 5%, making it the top performer on the Hang Seng index, following its share repurchases. Meanwhile, Wharf Real Estate Investment was the leader among Hong Kong's property developers, buoyed by hopeful sentiments about a potential decrease in borrowing costs in line with the US, which would ease the mortgage pressure on those purchasing homes.

The core US consumer price index, which does not include food and energy expenses, rose by 0.2% in December on a monthly basis, indicating the first deceleration in half a year. Inflation on an annual basis sped up by 3.2%, exceeding the Federal Reserve's goal of 2%. Certain officials have expressed optimism that inflation will keep decelerating based on these numbers. The S&P 500 saw a nearly 2% increase and the Nasdaq 100 surged over 2% in after-hours trading.

"Stephen Innes, the managing director at SPI Asset Management in Bangkok, revealed that a crucial inflation report unexpectedly suggested a reduction in the rate of primary cost increases. He noted that this slowdown pointed towards a mild relief from the ongoing inflationary stresses that have been troubling the market. Given this data, we can anticipate a more promising trading day across Asia this Thursday," he said.

Market participants will also be vigilant for crucial economic figures from China, scheduled for public release on Friday morning. Economists monitored by Bloomberg anticipate that economic growth for the fourth quarter likely quickened to 5 per cent, up from 4.6 per cent in the previous quarter. If this projection comes to fruition, it will aid China in achieving its yearly growth objective of approximately 5 per cent for 2024.

TikTok is set to cease operations in the US this Sunday unless a last-minute pardon is granted, according to insiders. The company has indicated that if TikTok's US operations are halted, it could result in the app becoming inaccessible for users in several other countries.

People who have already installed TikTok could, in theory, continue using the app. However, the legislation prevents American businesses from offering services that would facilitate the distribution, upkeep, or updating of the app starting from Sunday.

The Trump transition team didn't respond right away. Trump has expressed that he should be given time post-inauguration to seek a "political resolution" for the matter.

"TikTok is indeed an exceptional platform," stated Mike Waltz, Trump's soon-to-be national security adviser, during a Fox News interview on Wednesday. "We're determined to maintain it while ensuring the security of users' data."

BitMEX has been slapped with a US$100 million penalty for breaching US laws against money laundering. The founders of BitMEX have been charged with neglecting to implement anti-money-laundering measures and "know your customer" protocols.

BitMEX, also recognized as HDR Global Trading, received its sentencing from US District Judge John Koeltl in Manhattan after admitting guilt last July.

The verdict incorporates a two-year probation period. BitMEX and its creators, who admitted their guilt in 2022 and received a probationary sentence, had earlier paid approximately US$110 million in connected criminal and civil lawsuits, as indicated by court documents.

The legal representatives for BitMEX were not quick to answer inquiries for their views.

The prosecution has charged BitMEX and its founders, Benjamin Delo, Arthur Hayes, and Samuel Reed, with intentional breach of the Bank Secrecy Act from 2015 to 2020. They allegedly neglected to implement anti-money-laundering and "know your customer" measures, thereby transforming the exchange into a conduit for money laundering.

In 2021, BitMEX consented to pay a maximum of $100 million as a settlement of civil allegations made by two US regulatory bodies. The charges stated that the company inadequately vetted its customers and allowed them to trade in cryptocurrencies without proper registration.

The Dubai financial centre has given the green light to China's investment bank, CICC, to commence operations. The CEO of Dubai Financial Services Authority hails this license as a significant advancement for transnational transactions in the United Arab Emirates.

The Dubai International Financial Centre (DIFC) has granted a permit to the China International Capital Corporation (CICC) to conduct operations. This development enhances the presence of Chinese companies in the United Arab Emirates, reflecting the ongoing growth of cross-border activities.

The investment bank is set to become a part of China's top five banks that have established their presence in the special economic zone. This move will broaden the spectrum of financial services provided to aid cross-border transactions, such as trade and sustainable finance, as stated by Ian Johnston, the Chief Executive Officer of the Dubai Financial Services Authority (DFSA).

"Having CICC, a leading investment bank that can expedite transactions and agreements, is a significant advancement," Johnston stated during the Asian Financial Forum held on Tuesday in Hong Kong.

Last week, CICC Hong Kong Securities was granted a license. This permit gives the firm the authority to organize and provide advice on credit, financial products, and investment transactions, as per the DFSA public record.

CICC chose not to respond. During a press conference on Tuesday, Xu Jia, who serves as the assistant leader of the bank's investment banking division, stated that the bank's international branches strive to cater to the requirements of Chinese businesses for international mergers, purchases, and new project investments.

"Xu also acknowledged the need for autonomous equity financing and public offerings for these Chinese companies' nurtured businesses overseas."

Johnston indicated that Chinese banks are acquiring customers in sectors like infrastructure and project finance, expanding upon their current trade-related transactions.

CTF Services of Hong Kong is set to release convertible bonds worth US$100 million. The infrastructure division of Chow Tai Fook Enterprises has announced plans to register the new shares on the Hong Kong stock exchange.

The starting conversion cost of HK$8.043 for each share corresponds to roughly a 5 per cent increase from CTF Services' final stock value on Wednesday. After the conversion, the tool will represent about 2.37 per cent of the firm's total shared capital, as stated in a document submitted to the Hong Kong stock exchange.

The company anticipates raising around HK$769 million in net profits from the issuance. The firm has announced plans to utilize these funds to restore working capital, pay off the principal and interest on bonds and loans, among other applications.

The firm stated that the goal of the release is to replenish its public free float, presently approximately 23.83 per cent, to reach the mandatory minimum limit of 25 per cent.

The executives believe that the bond issuance is a suitable measure for the firm to reinstate public stock in compliance with the listing regulations, according to the submission. It further stated that the bonds will contribute to strengthening the company's financial foundation and will also support the company's long-term growth if the bonds are transformed into new stock.

The securities are set to be registered on the Vienna Stock Exchange. CTF Services announced its intention to get the newly issued shares listed on the Hong Kong stock market. UBS and HSBC are managing the transaction.

CTF Services from Hong Kong plans to release US$100 million worth of convertible bonds. The infrastructure subsidiary of Chow Tai Fook Enterprises has announced its intention to register the new shares on the Hong Kong stock market.

The beginning conversion cost of each share is HK$8.043, which represents roughly a 5% increase from the final stock price of CTF Services on Wednesday. After the conversion, the instrument will make up about 2.37% of the firm's total issued shares, as per a document submitted to the Hong Kong stock exchange.

The company anticipates that the issuance will yield around HK$769 million in net proceeds. They intend to use these funds to boost their operational capital and pay off the principal and interest on bonds and loans, among other things.

The business stated that the purpose of the issuance is to aid in reinstating its public free float, presently at approximately 23.83 percent, to reach the mandatory minimum of 25 percent.

The board members view the bond issuance as a suitable strategy for the business to regain public offering, as mandated by listing regulations," according to the report. It further highlighted that these bonds could enhance the company's financial foundation and contribute to its long-term growth, particularly if these bonds are transformed into new stocks.

The securities are set to be listed on the Vienna Stock Exchange. CTF Services has announced its intentions to apply for the new shares to be listed on the Hong Kong stock exchange. UBS and HSBC are managing the transaction.

Technology Battle: Chinese AI powerhouse Zhipu included in US trade blacklist prior to Biden's departure

Zhipu AI is one of over twenty companies from China and Singapore that were added to the US Entity List on Wednesday.

Zhipu, a company based in Beijing, made a statement late Wednesday refuting the US action, stating it lacks concrete evidence. The company also mentioned that being added to the Entity List would not significantly affect its business activities.

Sophgo failed to provide an immediate response to an inquiry for their opinion on Thursday. Efforts by The Post to get in touch with PowerAIR were unsuccessful, as the company lacks a public website, phone number, or email address.

TSMC reports record-breaking quarterly earnings, anticipates substantial revenue increase by early 2025

The world's biggest contract chip manufacturer's stock value has soared in spite of the uncertainties brought about by Donald Trump.

The biggest global contract chip manufacturer, serving clients like Apple and Nvidia, reported a 57% increase in net profit, reaching T$374.68 billion (US$11.4 billion) for the quarter concluding on December 31. This figure set a new record for any quarter and matched predictions. The company's revenue for this quarter saw a 39% rise compared to the same timeframe in the previous year.

Anticipations are for a comparable 37 per cent increase in revenue for the present quarter.

TSMC also announced that they anticipate their capital expenditure for the current year to range from $38 billion to $42 billion, reflecting up to a 41 per cent hike, while retaining their optimistic forecast for the demand in AI.

However, the Taiwanese firm is encountering challenges due to the US government's tech limitations imposed on China and the unpredictability surrounding President-elect Donald Trump's impending administration, which has hinted at imposing extensive import taxes.

Hong Kong experiences an uplift as three international hedge funds establish offices and hire employees. Sources indicate that Hudson Bay Capital, Sona Asset Management, and Centiva Capital are among those initiating operations in the city.

Three additional international hedge funds are broadening their operations to Hong Kong, offering some reassurance to the city eager to restore its status as a key financial center in the region.

Hudson Bay Capital Management, a multi-strategy company in the US, Sona Asset Management, a British credit firm, and Centiva Capital located in New York, are reportedly setting up operations in the city, according to sources familiar with the situation.

Hudson Bay, a company based in Stamford, Connecticut that manages approximately $20 billion, established a branch in Hong Kong in the early part of October, as per official documents. Its new hires in the city to date include Jack Truong, the former head of the Asia business development team at Segantii Capital Management, and Dong Yinfei, an ex-trader of convertible bonds at Segantii, according to sources who requested anonymity due to the private nature of the information.

Sona, under the management of John Aylward and handling $10.1 billion primarily in European public and private credit, established a branch in Hong Kong in August, as per a document viewed by Bloomberg News. The firm plans to populate the new branch with both transferred staff and fresh recruits, according to an individual.

Centiva Capital has been granted a regulatory license for its Hong Kong branch as of late November, following its expansion to Singapore three years prior, as per data found on the Hong Kong’s Securities and Futures Commission (SFC) website. Matthew Haudenschield, the head of Asia, and Piers Cassidy, a trader specializing in equity capital market transactions, are among the staff who moved to Hong Kong after abiding by Covid-19 regulations in Singapore, mentioned an individual familiar with the situation.

Hong Kong is welcoming new arrivals with open arms in a bid to counter the talent drain experienced during the prolonged period of Covid-19 limitations. The economic powerhouse is confronting escalating competition from Singapore and cities in the Middle East, as China’s economic growth decelerates and geopolitical conflicts intensify.

The owner of Hong Kong's closed Physical gym chain, Luk Ngai-keung, has sold four apartments at a discount exceeding 40%. These properties are part of the Park Haven development in Causeway Bay.

Luk managed to regain only HK$29 million (US$3.7 million) from the urgent sale, which is a total markdown of 43% from the HK$50 million he initially spent for the four apartments. The latest deal pertained to a 428 square foot, single-bedroom apartment on the 22nd floor, which was sold for HK$7.4 million, as per the Land Registry records. The ownership was transferred this past Monday.

The buying cost was 45% less than the HK$13.5 million he spent on the property in 2012. He acquired a total of six properties through a holding firm in 2012 for HK$80 million, and the last two apartments are now on the market at a discounted rate, as stated by the sales agent. The agent also mentioned that the proprietor is keen to liquidate his assets promptly and is ready to cut down the prices.

The gym, Physical, which is owned by Luk and his spouse, Ho Yuk-wah, shut down in September after operating for 38 years. The closure was due to a directive by the Mandatory Provident Fund Schemes Authority, which demanded that the fitness center settle an outstanding payment of approximately HK$3 million. This amount represented unpaid pension contributions for about 740 employees, covering two months and including related surcharges.

In the Chinese smartphone market in 2024, Apple lags behind Huawei and Vivo. However, iPhone led the game in the fourth quarter. In the last quarter, iPhone shipments in China dropped by 25%, resulting in Apple falling to the third spot for the year due to intensifying competition.

Huawei's presence in the Chinese smartphone market has rapidly expanded since the company, which is under US sanctions, launched its own locally-produced chips in 2023. The firm reported a 24 percent increase in shipments for the quarter and a 37 percent rise for the entire year. Canalys reports that Huawei's shipments totaled 46 million units last year.

Over the entire year, Apple lagged behind Vivo and Huawei in its second largest market, even though it had previously secured the leading position in 2023. The tech giant saw a decrease in shipments by 17 per cent, delivering 42.9 million units throughout the year. Apple accounted for 15 per cent of the market, whereas Vivo and Huawei held 17 per cent and 16 per cent of the market share, respectively.

The entire smartphone industry in China experienced a 5% increase in deliveries, reaching 77.4 million units in the last quarter. The year saw a 4% rise in total shipments, amounting to 285 million units, as reported by Canalys. This signifies a rebound in the area following a two-year downturn.

The value of China's yuan is increasing in the oil trade sector, though the petrodollar remains stable: according to a report. The digital yuan and progress in financial technology are aiding more transactions backed by the yuan in crude settlement.

The growth of China's digital currency and fintech sector is contributing to the increase in crude oil trade settlements in yuan, which is accelerating the downfall of the petrodollar, according to a study by a macroeconomic prediction company. However, a complete switch in dominance is still not probable.

"The fall of the petrodollar in the Gulf is not a matter of 'if', but rather 'when', and that 'when' is approaching more quickly than many understand," stated Diana Choyleva, the lead economist at Enodo Economics in London. She attributed this to the "swift transformations in financial technology," in the report released on Wednesday.

"Though the petroyuan might make headway, it isn't expected to completely replace the petrodollar anytime soon," stated the writer, who also holds a senior position at the Asia Society Policy Institute's Center for China Analysis.

These advancements present oil producers with not just feasible, but possibly better alternatives to dollar-based payment methods, according to Choyleva. She also mentioned that these traditional methods are especially susceptible to interruptions due to technological progress.